By Justine Irish D. Tabile, Journalist
THE Philippine Exporters Confederation, Inc. (Philexport) stated that its members must broaden their markets due to the volatility of US trade regulations.
“The challenge is, considering Trump, the circumstances are still fluid. He could alter his stance on certain matters,” Philexport President Sergio Ortiz-Luis, Jr. informed reporters.
“There are items currently exempted… These are aspects that he might reconsider,” he mentioned.
Last week, US President Donald J. Trump declared a 90-day suspension on the tariffs he introduced on April 2. The April 2 tariff framework included some of the highest charges being enforced on members of the Association of Southeast Asian Nations (ASEAN).
Cambodia is subjected to a 49% tariff, followed by Laos (48%), Vietnam (46%), Myanmar (44%), Thailand (36%), Indonesia (32%), Malaysia (24%), and Brunei (24%).
The Philippines was allotted a 17% tariff, the second highest in the region after Singapore’s baseline rate of 10%.
With the 90-day suspension now effective, all countries will incur a blanket 10% duty until July, while discussions in Washington are ongoing with various national delegations.
Following a virtual conference on Thursday, ASEAN ministers pledged not to implement retaliatory actions in response to the US tariffs.
Mr. Ortiz-Luis expressed that currently, the Philippines holds a favorable position, but “we need to monitor the forthcoming changes as some are negotiating, some are retaliating, so I believe we should remain observant and quiet.”
Specifically, Vietnam has indicated its readiness to reduce its tariffs on US products to zero.
When asked if this is a direction the Philippines should pursue, Mr. Ortiz-Luis remarked that the Philippines represents a relatively small market for the US.
“We are not a major exporter to the US … We don’t hold enough significance to influence the US,” he stated.
He pointed out that implementing a zero rate on US goods would instead lead to supply chain complications rather than aiding exporters.
According to him, the Philippines must tackle its non-tariff obstacles.
“Even with diminished tariffs here, that may not be adequate to mitigate issues like corruption and bureaucratic red tape, among others,” he articulated.
In its 2025 National Trade Estimate Report, the Office of the US Trade Representative highlighted bribery and corruption as significant barriers to trade in the Philippines.
“Corruption is a widespread and enduring issue in the Philippines. Both national and local government entities, especially the Bureau of Customs, are plagued by various corruption challenges,” the report stated.
“Both international and domestic investors have voiced concerns regarding the opacity in judicial and regulatory procedures,” it continued.
When inquired about which markets the Philippines should emphasize, he answered, “China. Previously, China was approaching the US as an export market.”
“If you consider Greater China collectively, they surpass both the US and Japan combined. Hence, it is crucial that we persist in cultivating other markets,” he added.
